How Much Does SEM Cost? Know Costs Involved, Factors that Determine the Price and More!

Wondering what are the costs in SEM and what are the factors that determine its pricing? Here’s all you need to know.

How much does SEM cost

What is Search Engine Marketing (SEM)?

Search Engine Marketing (SEM) is one of the forms of paid advertising which can be done to promote one’s business or products. Some of the latest forms of SEM are social media advertising and PPC advertising.

What are the main services of SEM?

main services of SEM

The SEM method is responsible for handling various kinds of process, such as creating advertising accounts, designing keywords and reach of the keywords towards customers, creating visual content (pictures and videos), formation of ad campaigns and groups of people and processes responsible for them, management of bids and performance analysis of your ads with weekly or monthly reports.

While these are the basic processes of SEM, one should consult with the respective SEM agency and get elaborated information from them about their services. Usually, these are the services which are in trend of the SEM right now:

  • Search Ads
  • Display Ads
  • Remarketing Ads
  • Video Ads
  • Shopping Ads
  • App install Ads
  • Gmail Ads
  • Landing Page Design
  • Creative Ad Copies
  • A/B Testing
  • Dynamic Ads Campaign
  • Call-only Ads Campaign

What are the costs involved in SEM?

Currently, almost all small and medium scales businesses (SMBs) are relying on SEM marketing for their better reach to customers online. Usually, when it comes to SEM, the cost of the whole process chargeable by the management agency can vary between 5-25% of the total budget of the ad.

Depending on the number of SEM services, ranging from the smallest to the most complicated ones, an SEM package generally can cost between Rs. 5,000 to 60,000. It can obviously cost even more for larger scale businesses.

What are the factors which determine the pricing of SEM?

Factors which determine the pricing of SEM

There are multiple factors which are responsible for the expenditure structure of the overall pricing, which are as follows:

  • Ad strategy – For generating greater return on investment (ROI), the agency responsible for the SEM should come up with a competitive ad strategy.
  • Ad spend – Ad spend is a basic pricing distribution model for the various services one selects for the advertising of its product or services
  • Experience of ad agency – The bigger is the experience of the ad agency, the more expensive their services are in general.
  • Size of the ad campaign – It is a given fact that larger the size and number of campaigns, more will be the cost of SEM.
  • Pricing model of agency – All SEM agencies charge different for different services. You need to make sure that which ad agency is charging optimum for the services you want.

What are the advantages of SEM?

The biggest advantage of SEM has to be the visibility of your ad at forefront of online viewers. With SEM, one can earn instant online presence on a higher priority in search results as well as in prime locations of other websites as well. The SEM also enhances the awareness of your brand, which eventually leads to increase in the number of incoming leads and revenues from them. Apart from that, the SEM is very helpful in optimizing the overall budget of your advertising with the help of smaller part strategies, which are cost-effective in general.

Related Articles


Please enter your comment!
Please enter your name here

Latest Articles